Fix and Flip Loan Requirements
AAPL Member · Direct Lender Since 2016 · NMLS #1979189
A fix and flip loan is judged on the flip, not on you. That’s the single idea that explains every requirement below, and it’s why investors who’d never clear a conventional mortgage routinely get funded on a strong project. A fix and flip loan is short-term, asset-based financing that covers both the purchase and the renovation of a distressed property, underwritten on what the property will be worth after repairs. So the requirements are really questions about the deal: Does it have margin? Can you execute the rehab? How does it get paid back? Here’s what it takes to qualify, from a direct lender that’s funded flips since 2016.
The Deal Has to Pencil Out — the 70% Rule
The most important requirement is a deal with real spread. We size a flip loan against the after-repair value (ARV) — what the property will be worth once renovated, backed by comps and an appraisal — and we keep your total purchase-plus-rehab within roughly 70% of that ARV. That cushion is what protects your profit and our position. A property you can buy and renovate well under 70% of its finished value is a strong application; a deal where your all-in cost crowds the ARV is the hardest to fund, no matter how good your credit is. Before you apply, run the numbers on our hard money loan estimator.
Your Cash in the Deal
Fix and flip loans are high-leverage but not zero-down. For qualified borrowers we fund up to 90% of the purchase and 100% of the rehab, which means the cash you bring can be limited to points, closing costs, and reserves rather than a large down payment — as long as the deal stays under that 70% ARV ceiling. The leverage you actually get scales with two things: the strength of the deal’s margin, and your experience. A seasoned flipper with a wide-margin deal reaches the maximums; a first-timer or a thinner deal brings more cash.
A Realistic Rehab Scope and Budget
Because we fund the renovation, we need to see the scope of work and a credible budget. The rehab money is released through draws as the work is completed and verified, so a detailed, realistic budget isn’t bureaucracy — it’s how the loan is structured. Padded or vague budgets slow everything down; a clear scope tied to the comps that support your ARV moves fast. If you’re using contractors, having them lined up strengthens the file.
A Clear Exit
The exit on a flip is usually obvious — sell the renovated property — but it still has to be credible, supported by the comps behind your ARV. The other common exit is the BRRRR pivot: instead of selling, you refinance into a long-term DSCR loan and keep the property as a rental, pulling your capital back out. Either way, we map the exit before funding. If timing between deals gets tight, a bridge loan can carry the gap.
Credit, Experience, and Entity
We pull a hard credit report, but there’s no minimum credit score — a weaker score adjusts your rate, leverage, or reserves rather than disqualifying you. Experience isn’t required and we work with first-time flippers, but it’s the main lever on how much leverage you get and how little you have to bring. Most investors close in an LLC, which is fully supported and recommended for liability protection. And we want to see reserves to carry the interest payments and absorb the overruns that nearly every rehab produces.
Fix and Flip Loan Requirements at a Glance
Fix and Flip Loan Requirements at a Glance
What You'll Need to Provide
Far less than a bank asks for. Expect the purchase contract, your rehab scope and budget, comps or an appraisal supporting the ARV, entity documents, and proof of funds for your cash and reserves. No tax returns, no W-2s, no pay stubs. Our loan document checklist lays out the full list, and current pricing is on our fix and flip loan rates page.
Frequently Asked Questions
There’s no minimum credit score. We pull a hard credit report, but a low score doesn’t disqualify your deal — it adjusts your rate, leverage, or reserves. A strong deal with real margin and a clear exit matters far more than a perfect score.
On a qualifying deal, the cash you bring can be limited to points, closing costs, and reserves, because we fund up to 90% of the purchase and 100% of the rehab — as long as the total stays within 70% of the ARV. Thinner deals and first-time flippers generally require more.
No, we work with first-time flippers. Experience isn’t a hard requirement, but it’s the main factor in how much leverage you receive and how little you put down. A first-timer with a well-analyzed deal, realistic comps, and a clear rehab scope is in good shape.
ARV is the after-repair value — what the property will be worth once renovated, backed by comps and an appraisal. It’s the basis for the whole loan: we keep your total purchase-plus-rehab within about 70% of ARV, so the spread between your cost and the ARV determines how much we can lend.
Either works. Most flips exit through a sale, but you can also pivot to the BRRRR strategy — refinance into a long-term DSCR loan, keep the property as a rental, and pull your capital back out. We map your intended exit before funding.
Wondering if your flip qualifies?
Tell us the property, the ARV, and your rehab budget. We underwrite the deal, not your paycheck — and we’ll tell you fast.